By Zinnia B. Dela Peña
The Philippine Star 09/09/2006
The Securities and Exchange Commission (SEC) has approved the registration of Filinvest Land's Seascape Beach Club and Spa, paving the way for the sale of 2,395 proprietary shares worth as much as P958 million.
The club forms part of the 12-hectare Seascapes Resort Town in Mactan, Cebu. This project involves the development of a world-class sports and nature club.
Based on its registration statement, Seascape will offer to the public a total of 1,395 class A, 840 class B and 160 class C shares priced at between P300,000 to P400,000 each. The company hopes to raise between P854.52 million and P958 million from the offering.
The shares will be offered by Filinvest Land's parent firm Filinvest Development Corp. (FDC) by way of a secondary offering to eligible investors.
Class A and B shares are available to natural and juridical persons and are entitled to one vote per share in any and all regular and special meetings, to membership in the club and to the use of facilities of the club.
Proceeds from the offering will be used to finance the development of the club and its facilities for its members. The total projected capital requirement for the club is placed at P450 million.
The club will be built in two phases, with the first phase slated for completion on Sept. 2007. Development of the second phase, on the other hand, is expected to be completed by May 2008.
Among the club's amenities include a ballroom which will be ideal for weddings and events, restaurants and bars, library lounge, outdoor party area, spa, salon, gym, children's area, beach club pool, badminton courts, tennis courts, watersports, and clubshop.
During the construction and pre-operating stages of the project, FDC expects a negative cashflow which will be financed by equity and debt. Interest expense is the estimated interest the project will incur for the P100-million debt to be incurred by FDC to finance the project.
The usual term of a project loan is that its term is from three to five years. Interest rate is based on the prevailing fixed rate note base plus a spread.
Proceeds from the sale of shares will be deposited in escrow with East West Banking Corp., the banking arm of the Filinvest group.
FDC has a secured facility of corporate promissory notes with the Development Bank of the Philippines for up to P1 billion, which will be used to finance the development of the Seascapes Resort Town.
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